Saber Interactive Has Left Embracer Group in a Deal Worth $247 Million
Recent reports had indicated that Saber Interactive was on the verge agreeing a deal with parent company Embracer Group that would see it going independent. That has now been officially confirmed.
Embracer Group has announced that it has agreed to sell Saber Interactive to Beacon Interactive, a company created by Saber co-founder Matthew Karch for the purposes of the transaction. Embracer and Karch have been negotiating the deal since November last year, at which time Karch agreed to step away from Embracer Group and Saber Interactive management so as to avoid a conflict of interest.
The deal will be worth $247 million (SEK 2,527 million), of which $44 million (SEK 450 million) has been allocated as absorbed earn-out debt obligations. In total, Embracer says the deal will see it divesting 38 ongoing game development projects worth SEK 2.3 billion (roughly $224.3 million). This will also include “certain proprietary engine technology and game tools relating to the divested companies.”
“I am pleased that we have found a win-win solution for Embracer and the parts of Saber that now will leave us,” said Embracer Group CEO and co-founder Lars Wingefors. “This transaction puts both companies in a stronger position to thrive going forward. Embracer is now able to discontinue all operations in Russia, according to a previous board decision, while safeguarding many developer jobs under new independent ownership. At the same time, we keep key companies, valuable IPs and future publishing rights. Cash flow is immediately improved, and we remain committed to reducing net debt. The transaction yields additional headroom to amortize debt in accordance with existing bank agreements and will improve financial flexibility. This is the first transaction of the previously mentioned structured processes and marks a small but important step in our journey to transform Embracer into the future for the benefit of all employees, gamers, and shareholders.”
“Over the past four years, I have
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